Value systems across cultures can help to explain the differences in behaviour amongst people from different countries (McCort and Malhotra, 1993), which tend to stay with people over time. There are many different cultures and in order for an organisation to be successful, they need to take many different into account to ensure that they are successful in different countries and cultures. Cultural values appear to have considerable effects on management decision making processes (Clark, 1990; Ken, 1985; Picken, 1987; Shane, 1988; Swierczek, 1991). Culture is defined as “the set of distinctive spiritual, material, intellectual and emotional features of society or a social group, and that it encompasses, in addition to art and literature, ways of living together, value systems, traditions and beliefs” (Unesco, 2002). Hofstede (1983) suggests that individuals from similar cultures have a “collective mental programming” which is part of their conditioning that they share with other citizens of the country they reside in but not with other citizens who do not live in the same country. Hofstede defines this “collective mental programming” as culture (Armstrong, 1996). Several researchers have documented the cultural influence on consumer behaviour (e.g Erickson et al, 1984). Other researchers have focused on ethnic differences (e.g. Wallenford and Reilly, 1983). Tse et al (1988) also investigated whether a manager’s home culture has “predicable” significant effects on decision making of executives from the People’s Republic of China and Canada. A study comparing Hofstede’s dimensions of culture (Wall, Minocha & Rees, 2011) and Trompenaars dimensions shows the different levels of culture, which includes Individualism versus Col... ... middle of paper ... ...price, it also allows for them to increase their sales and enter into new markets, which in turn would help to increase their profits. Distribution channels for when, how and where an organisation’s products are distributed to their consumers. [REFERENCE] The organisation needs to carefully place where they want to distribute their products. For instance, they may have an expensive handbag, so they it would make sense to place it in upmarket department stores and boutiques so that the product is seen as being more exclusive and it also makes it more difficult to obtain if they aren’t available everywhere. [REF] However, if the product is seen as too difficult to obtain, it could affect the overall opinion of the product, which could result in less sales as consumers in developing countries would not consider it a necessary purchase so may choose to go without it.
Geert Hofstede performed the most lauded research on The Dimensions of Culture theory. His findings and the model that he created were outlined in his 1980 book “Cultures Consequences.” The work was met with both acclaim and disregard from fellow academics. Hofstede’s work is generally quoted and cited without any hesitation even today and his model is still widely used the main guideline for dealing with human resources from a cultural perspective.
Geert Hofstede’s research in this area has been largely accepted as the standard for understanding culture within nations for study in many different disciplines including sociology and management research, among others. His studies because of their vastness in scale, gathering data from more than ”60,000 respondents in seventy different countries,” makes his research extremely reliable and foundational to research in this area (Hofstede, 1984, 1991, 2001).”
Hofstede, G. (1980). Culture's Consequences: International Differences in Work-Related Values. Beverly Hills, CA: Sage Publications.
According to (Hofstede, Hofstede, & Minkov, 2010) described that the culture can be defined as it is made up of “thinking, feeling, and potential acting” that all people carry within themselves, which he terms as “mental programs.” Likewise, after did a large number of research, Hofstede decided to divide cultural differences into five dimensions, they are power distance, Individualism vs. Collectivism, uncertainty avoidance, Masculinity vs. Femininity and long-term vs. short-term orientation respectively. Putting more details into these five
In the article, Cultural constraints in management theories, Geert Hofstede examines business management around the globe from a cultural perspective. He explains how he believes there are no universal practices when it comes to management and offers examples from the US, Germany, France, Japan, Holland, China and Russia. He demonstrates how business management theories and practices are very much subject to cultural norms and values and by understanding these differences, it can give managers an advantage in global business practices.
...urselfers. The distribution strategy identifies the major channels through which the product will delivered and pushed through to the consumers.
Critics of Hofstede’s work argue that Hofstede’s study is flawed and outdated; for example, Hofstede’s analysis has a static and polarized vision of culture and is believed to be stable over time, whereas now with globalization, internationalization and convergence of cultures, cultures are rapidly changing (Fang 2009). Despite Hofstede’s work being nothing short of controversial, his work on culture, which Hofstede (1980, 1981) defines, as “the collective programming of the mind distinguishing the members of one group or category of people from others,” is still the most cited in the field of cross-cultural management in existence (Bond 2002). Furthermore, Hofstede’s groundbreaking research has successfully allowed for other cross-cultural scholars to comprehend and grasp the challenging concept of national cultural stereotypes in measurable and concrete terms (Fang
The dimensions of culture came as a result of a research conducted by Greet Hofstede. The study investigated how culture in a workplace can be influenced by values of the people. In his view, culture is defined as the collective programming of the human brain that helps in distinguishing a group from another one. Moreover, the programming of the human mind influences the patterns, values and perspectives that define a certain community or nation. Hofstede developed a model of the national culture that is made of six dimensions. In addition to that, the cultural dimensions demonstrate the personal preferences on affairs that can be easily distinguished from that of individuals from another nation. Using the model, it is easy to identify systematic differences between the selected nations in terms of values (Hofstede). This paper discusses the cultural dimensions to compare the United States of America and China. The dimensions include Power Distance, Masculinity versus Femininity, Uncertainty Avoidance Index, and Individualism versus collectivism, Indulgence versus Restraint and long-term orientation versus short term normative orientation.
Distribution channels or marketing channels can best be understood as a pathway through which product (goods and services) are made available for the consumers to use with ease
According to Hofstede (2001), a value is “a broad tendency to prefer certain states of affairs over others”, he states that values are held by individuals as well as by collectivities. Values and beliefs are learnt in national culture and vary enormously across national cultures. Culture has been defined in many ways, the definition of culture used in this paper will follow Hofstede (2001) which define culture as “the collective programming of the mind that distinguishes the members of one group or category of people from another”.
Hofstede’s research present a static view of culture yet culture is dynamic. The model only offers a single cultural profile per country while country members and companies will often be subject to multiple, potentially conflicting, cultural currents. Despite these and other criticisms, Hofstede’s work, as stated, remains the dominant model for cross-cultural
MAIN ISSUE LITERATUR REVIEW Channel Distribution Channel distribution is sets of interdependent organization involved in the process of marketing product or service available for use or consumption (Kotler, 2006). Channel’s advantages Instead of did everything in a house by producer themselves, Producer gain several advantages if they would like to use intermediaries. Below are the advantages (Kotler, 2006): Many producers lack the financial resources to carry out direct marketing. Producers who do establish their own channels can often earn a greater return by increasing investment in their main business. In some cases, direct marketing simply is not feasible. *Distribution Channel-Strategy* (www.tutor2u.net) The factors that influence the choice of distribution channel by a business: The willingness of channel intermediaries to market product is also a factor. Retailers in particular invest heavily in properties, shop fitting etc. They may decide not to support a particular product if it requires too much investment (e.g. training, display equipment, warehousing). Another important factor is intermediary cost. Intermediaries typically charge a "mark-up" or "commission" for participating in the channel. This might be deemed unacceptably high for the ultimate producer business. A key question is whether the producer have the resources to perform the functions of the channel? For example a producer may not have the resources to recruit, train and equip a sales team. If so, the only option may be to use agents and/or other distributors. Producers may also feel that they do not possess the customer-based skills to distribute their products. Many channel intermediaries focus heavily on the customer interface as a way of creating competitive advantage and cementing the relationship with their supplying producers.
Cultural awareness is where one becomes open to new beliefs, cultures, and religions. It requires one to be open to new ideas and perceptions, without discrimination. Cultural awareness also requires one to understand his or her own beliefs to better learn about another culture’s differences.
Culture has been a pervasive part of humanity since the beginning of civilization. Wood (2010), professor of communications, defines culture as "the totality of beliefs, values, understandings, practices, and ways of interpreting experience that are shared by a number of people" (p 78). The way I see it, culture shapes an individual and creates their worldview. Each culture emphasizes an important aspect of the humans and displays the complexities of our species. Even though culture includes many elements, I will discuss one of Hofstede's Cultural Dimensions, Individualism, and explain how it creates a high or low context culture.
Tylor has pointed out that "culture is complex whole which includes knowledge, beliefs, art, morals, laws, customs and any other capabilities and habits acquired by man as a member of society". According to this definition, it is easy to know that every nation has different cultural preferences, national tastes and value standards. These factors impact on every part of management in multinat...